2006 Audi A3

The virtues of a sports car and wagon in a hatchback.

Things will get a bit more crowded in the premium compact segment of the U.S. car market with the arrival of Audi's second-generation A3 next May.

Acura has been doing well in the pricey small-car segment here for years, Saab recently added its 9-2X to the mix, and Volvo's S40 sedan and V50 wagon are likewise vying for market share. BMW's 1-series should join the fray in 2007, although Mercedes still has no plans to put its diminutive A-class in American showrooms.

Audi exports two versions of the A3 from Germany: a three-door coupe and a five-door hatchback. This May, U.S. Audi dealers will get the five-door version (but not the coupe). The car will ride on the latest European Golf platform (although American-bound VWs won't use that platform until 2006). To keep the A3's price down, it will initially be available here only with front-wheel drive, although the well-known Quattro option should turn up in the spring of 2006.

The overall length of the A3 is 10.3 inches shorter than an A4 Avant wagon, and the A3 is also about 400 pounds lighter. It has a new turbocharged and intercooled 2.0-liter DOHC four-cylinder engine with direct fuel injection that cranks out 197 horsepower and 207 pound-feet of torque. Enthusiasts will certainly appreciate the six-speed manual transmission, and there is also the optional six-speed Direct Shift Gearbox. That's the same twin-clutch gearbox Audi introduced in the TT last year-it shifts automatically in normal or sport mode, or manually with the gear lever or paddles mounted behind the steering wheel. A serious kick-butt model will come with an optional 247-hp, 3.2-liter V-6 engine and will be sold only with Quattro and DSG, but that won't be available here until the first quarter of 2006.

The exterior appearance of the A3 is dominated by the chrome-ringed trapezoidal grille that Audi introduced on the A6. The trapezoidal shape is echoed in the hatch and in the hub of the steering wheel. A big nose, tapering body lines, and short front and rear overhangs give the A3 a muscular, sporty flair.

Inside, there's a plush look and feel, as well as hints of sportiness from the TT, with brushed-aluminum ringed air vents, HVAC knobs, and door-trim pieces. The front seats are comfortable, supportive, and much appreciated when the A3 is driven aggressively. The rear seats are also comfortable, and there's a lot more head and leg room available than the tapered exterior would suggest. A six-foot-tall driver and a like-sized rear-seat passenger had room to spare. Luggage space with the rear seats up is adequate, and the seats fold and split 60/40 for hauling larger loads. Front and side airbags are standard in front, as are curtain airbags for front and rear; rear side airbags will be optional.

Under the sheetmetal there's a strut front suspension and a multilink rear suspension. Sixteen-inch wheels with 205/55 tires are standard; 17-inch wheels with meatier 225/45 tires are optional.

Audi brought the press to the mountainous and twisty roads of the Maritime Alps in southern France for a test drive. The turbo 2.0-liter engine had plenty of power for zipping up grades and passing slower-moving traffic. Mated with the six-speed manual transmission, turbo lag was almost nil. The manual had a precise, almost rifle-bolt-like feel to its movement that made running through the gears a joy. The optional 3.2-liter V-6 and DSG combo transform the A3 from a fast runner into a sprinter. From a handling standpoint the A3 feels much more like a sports car than a five-door wagon. It charges through corners with very little body lean, and there's only a bit of understeer at the limit. The ride is comfortable yet firm.

Pricing isn't set yet, but Audi estimates the base price of a front-wheel-drive, four-cylinder A3 to be about $25,000. The V-6 DSG Quattro version would add another five grand. A base Saab 9-2X Aero (with the turbocharged engine) goes for $27,645, and a BMW 325i wagon starts at $31,495.

The Audi A3 is a good combination of sporty handling and performance, and hatchback practicality, at an attractive price. We can't wait to see how it will compare with the BMW 1-series. Both cars' dimensions are within inches of each other, but the BMW will be rear-wheel drive. As we said, the premium-compact segment of the market is about to get a bit more crowded, but in this case that's a good thing.

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